Numbers of SMSFs set up by accountants declines
The number of self-managed superannuation funds (SMSFs) set up by accountants has fallen by more than 20 per cent in the last two years with more funds being set up by financial planners and SMSF administrators according to research conducted by Investment Trends.
The research, which was conducted between March and April of this year among 2163 SMSF investors drawn from a survey of the Australian adult population, found that of the SMSFs set up in the past two years (2012-14) only 31 per cent were done so by an accountant, down from 53 per cent for the previous two year period (2009-11).
SMSFs set up by financial planners climbed from 15 per cent to 20 per cent across the two periods while funds set up by SMSF administrators climbed from 16 to 24 per cent across the same periods.
Investment Trends senior analyst Recep III Peker said the most commonly reported reasons for using SMSF administrators was ease of use, lower cost and outsourced administration service with about 150,000 SMSFs currently using administration services. However he said about 40,000 of those SMSFs had been referred to the services by planners and accountants who did not conduct administration work inhouse.
Peker said while advice from an accountant still rated second as a reason for setting up an SMSF it had fallen since the last survey as investment markets had returned and SMSF trustees began to consider financial planning advice.
He stated the numbers of SMSFs trustees who were seeking advice had bottomed out in 2013 and 58 per cent of trustees had indicated they would seek advice this year and next year.
Peker said those who intend to set up an SMSF stated their main reasons were control and lower costs followed by looking to invest in property or to borrow and gear within their superannuation fund.
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